The Kirkland City Council last week voted to keep its $15 per-square-foot affordability fee on residential units larger than 2,000 square feet, rejecting a proposal to raise that threshold to 2,500 square feet in a narrow 3-4 vote. The decision came after months of debate over how to balance revenue for affordable housing with incentives for smaller homes in the city's formerly single-family neighborhoods. The fee, which was approved in mid-2025 and takes effect in January, will apply only to the portion of each unit exceeding 2,000 square feet.
Between May 2024 and December 2025, the city issued permits for 64 new cottage housing units compared to 104 single-family homes, according to city records. Kirkland staff project the new fee will generate $3.3 million within 18 months of implementation. Redmond has phased in a $30 per-square-foot fee since 2025 with no exemptions for smaller units, set to take full effect at the same time as Kirkland's lower rate. The three councilmembers who supported raising the exemption threshold—Shilpa Prem, Amy Falcone, and John Tymczyszyn—argued that data showed average townhome sizes in low-density zones hover around 2,400 square feet.
Planning and Building Department Director Adam Weinstein told the council that generating funding for affordable housing is "the primary intent of the ordinance," pointing to state-mandated growth targets that show 80% of the city's need—roughly 10,444 units—must be affordable to households earning less than 50% of median income. City staff recommended keeping the 2,000-square-foot exemption, arguing in an August 18 report that raising it "mainly benefits single-family homes which are not affordable to most community members." Councilmember Prem's separate amendment to raise the fee from $15 to $20 per square foot passed 4-3 but became moot when the overall ordinance failed.
The debate reflects broader tensions around inclusionary zoning programs, which have spread across Seattle's suburbs in recent years. Deputy Mayor Neal Black said his goal was to "ensure the responsibilities assist in the production of affordable housing doesn't continue to fall disproportionately on multifamily housing" while fostering construction of smaller homes. The council won't revisit the fee until 2028 at the earliest, though code amendments to make middle housing easier to build are expected later this year. Mayor Kelli Curtis noted the policy took two years of community and planning department work, adding that "sometimes things are complicated and hard, and it takes us time."